Nature of receipts - interest earned on FDs during the year was...

Nature of receipts - interest earned on FDs during the year was prior to commencement of business - The Appellate Tribunal referred to a previous decision involving the assessee for assessment years 2013-14 and 2014-15, wherein the ITAT Ahmedabad Bench ruled in favor of treating interest income earned on FDs before the commencement of business as capital receipts. Based on this precedent, the Tribunal upheld the decision to treat the interest income as capital receipts. It dismissed the Department's objection regarding the nexus between borrowed funds and investments, deeming it irrelevant in light of previous assessments.